allowableDiscretionary
Owner charitable contributions
Donations made at the owner's discretion that a new owner would not be obligated to continue.
Rule
Add back when discretionary. Contributions tied to customer contracts or community obligations are conditional.
Evidence lenders expect
- General ledger detail
- Donation receipts
Worked example
As reported
Contributions $12,000
In the memo
$12,000 added back
The objection you will hear
Rare; some lenders cap discretionary add-backs.
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